Monday, February 22, 2010

Hyundai to shift part of i20 production from India to Europe

Hyundai shifts a part of i20 production from India to Europe.

Hyundai Motor Company decided to shift part of its compact i20 car production from India to Europe. The Korean carmaker operates a production plant in Czech Republic, however Hyundai announced it will shift i20 production to its other European plant, located in Turkey.

The i20 production is shifted to Europe due to an increased demand from European consumers.

According to Arvind Saxena, director at Hyundai Motor India, the European demand for Hyundai i20 is growing and it is not possible for the company to supply enough cars from one plant alone. Therefore, Hyundai decided to shift a certain part of the i20 production to Turkey.

Hyundai expects to sell 40.000 units of i20 hatchback in Europe during the next 12 months, while sales is expected to increase to 70.000 units in 2011.

By relocating a part of i20 production from India, Hyundai will free up capacity for the all-new small car, which is currently still under development. The new model is said to be smaller and cheaper than the current i10 hatchback.

According to Arvind Saxena, the all-new small car from Hyundai is still in the early process of car development, so it will take the company at least a year and a half before it can bring it to the market. [Source: calcuttanews.net]

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